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deductions cannot exceed the Standard of Need for the benefit group size.

Excluded income: Certain types of income are excluded in their entirety based upon the source of income or the person who receives it. This includes types excluded by federal statute and/or by NMWA. Excluded income sources include but may not be limited to benefits from: • Medicaid, SNAP and LIHEAP • Government subsidized foster care (if the child for whom the foster care payment is received is also excluded from the benefit group) • Universal Based Income (UBI) • Guaranteed Based Income (GBI) • SSI • Government subsidized housing and housing payments • Certain education payments • Census Income • Child Support Services Division up to $200

Federally excluded income types are based on a listing in the states SNAP regulations. Earned income of a minor head of household or a dependent child included in the benefit group is excluded. The unearned income of a dependent child is considered available to the benefit group and is included. Other types of income may be excluded at the discretion of the Department. Earned Income Deductions: Earned income deductions are applied to the earned income of benefit group members. Deductions are allowed in both applicant and recipient status and without regard to how long benefits have been received. • Business and Self-employment costs are deducted from the gross earning of a self-employed benefit group member. The remainder becomes the gross countable income of the individual. • The Work Incentive deduction of $125 for each adult or minor parent in a single-parent benefit group and $225 for each parent in a two-parent benefit group is subtracted from the recipient's gross earnings. From the balance, one-half of the remainder is subtracted. • Contributions to approved Individual Development Accounts (IDA) are deducted from the employed members earned income for the actual amount that is contributed. Childcare Costs: Out-of-pocket expenses for childcare, for a dependent child included in the benefit group that are necessary due to the employment of a benefit group member are allowed. The deductible amount may not exceed $200 per month for a child under the age of two and $175 per month for a child aged two or older.

9.9 PROGRAM DELIVERY